1) Use an uSD card to boot from (Not
really rooting it as this does nothing to the NC OS)

This allows you to get a feel of how
it works as a Tablet, it does not work as fast as when you root the eMMC
(Internal Memory).

2) Use
ManualNooter
link below or just click on it here) to modify the Stock B&N OS. This has the
advantage of using your NC

in a way that it will be able to run
as a stock NC or as a rooted NC. You can install the Nook Home app and anytime
you want the stock look and feel just run that app. I like this best because I
have apx 360 Books, and I like to have BookShelves. When you root with CM7 or
Honeycomb, you have to run the B&N Nook app, and it does not have BookShevles.

You have access to both the full
Android Market, and The B&N App store this way. When you replace the B&N OS with
CM7 or Honeycomb, you will not be able to get to the B&N App store.

3) Install CM7 or Honeycomb on the
eMMC (internal Memory) and replace the B&N Stock OS. I like the look and feel of
this the best, BUT I want bookshelves, so I use ManualNooter. This is REALLY
sweet though, and really shows how well the NC is at being a Android Tablet. It
runs faster/snappier than a ManualNootered NC IMHO.